La Merced is a barrio or a neighborhood of Mexico City defined by its socioeconomics and history rather than by an official designation. It extends over the southeast of the historic center of Mexico City and is one of the oldest sections of the city, established over years ago by the Mexica as part of the founding of Tenochtitlan.
In the latter 19th century, the La Merced market was established in the area replacing the massive La Merced monastery which was almost completely destroyed in the s. This market was established to centralize the marketing of foodstuffs for the city on one area. The first La Merced market was built in and then replaced by the current building in , one of the largest traditional Mexican markets in Mexico City.
In the s, the wholesale function of this market was taken over by the newly constructed Centro de Abasto in the south of the city, with the barrio then going into economic and social decline, with the area having problems with poverty, prostitution and population loss.
Although there have been efforts to revitalize the area and the La Merced market remains important. It is part of the declared World Heritage site, with about forty percent of the area's historic buildings. The neighborhood is defined by both its history and its social structure with most of formerly occupied by the massive La Merced monastery complex.
Here the population is more stable although it has suffered a loss of population like the rest of the historic center. Its businesses have shifted from retail outlets to warehouses with the exception of the westernmost section. The western section is almost entirely commercial with few residences. This area also has the largest number of street vendors.
